Ananda Palitha Affirms Truthfulness of Allegations Against Petroleum Corporation Chairman

The Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, has initiated legal action against Ananda Palitha, a trade union leader affiliated with the Samagi Jana Balawegaya (SJB), over alleged defamation.

A letter of demand, sent through Attorney-at-Law Sampath Yalewatte on December 24, accuses Palitha of engaging in a deliberate and planned campaign of false and defamatory propaganda against the CPC Chairman. The legal notice seeks Rs. 500 million in compensation, citing damage to the chairman’s personal and professional reputation.

Rajakaruna alleges that Palitha’s public statements were designed to harm his image, describing the accusations as "hateful and baseless."

However, Ananda Palitha has strongly refuted the claims, maintaining that all information he presented during media briefings was accurate and truthful. His attorney has argued that revealing factual information in a public forum cannot constitute defamation or personal attack.

Key Allegations Against the Chairman:

1. Excessive Remuneration: Palitha alleges that the CPC Chairman receives allowances exceeding limits outlined in Ministry of Finance circulars PED 01/2020 and PED 03/2015, citing CPSTL board paper No. 252 dated November 10, 2024, as evidence.
2. Misuse of Company Vehicles: Rajakaruna is accused of using two luxury vehicles—a Benz (CAB 2355) owned by CPC and a BMW (KV 4078) owned by CPSTL—contrary to government pledges to curb such practices.
3. Violation of Anti-Corruption Laws: Palitha's legal team has indicated plans to file a complaint with the Commission to Investigate Allegations of Bribery or Corruption, citing breaches of the Anti-Corruption Act No. 9 of 2023.

Legal and Public Repercussions:
Palitha’s attorney has stated that the CPC Chairman will be personally responsible for the legal fees incurred in the case. If corporate funds are used for the chairman’s defense, it could lead to further legal consequences for both the chairman and any officials who authorize such expenditures.

Furthermore, Palitha has signaled his intention to counter-sue for malicious prosecution should the defamation suit proceed.

This legal battle has sparked significant public interest, with calls for a thorough investigation into the allegations. Observers note that individuals close to the President have reportedly urged Chairman Rajakaruna to step down pending the inquiry.

The situation underscores tensions between trade union activists and corporate leadership in Sri Lanka's petroleum sector, raising questions about governance, accountability, and freedom of expression.